The Financial Stability Oversight Council (FSOC) has expressed concerns regarding the stability risks posed by stablecoins, particularly highlighting the dominance of one issuer that controls 70% of the market. In response, Caitlin Long, CEO of Custodia Bank, criticized the FSOC's stance, arguing that their focus on concentration risks overlooks the regulatory environment that has shaped the current market dynamics. Long emphasized that the regulators have contributed to the concentration by forcing crypto-friendly banks to comply with stringent regulations. The FSOC's warnings come as they call for legislative action to enhance oversight of stablecoins, citing their vulnerability to runs and the lack of robust risk management standards as potential threats to financial stability. Additionally, commentary on the demand for stablecoins in relation to U.S. Treasuries and the strength of the U.S. dollar has emerged as part of the ongoing discussion.